Economic Growth Flashcards
1
Q
Example
A
2019 has been characterized with arguably the worst power crisis Zambia
has ever seen with load-shedding for 8 months of the year and power
shortages reaching up to 20 hours a day in some areas.
Load-shedding in 2019 has had a negative impact on economic growth,
with expected growth for 2019 to drop below 2 percent. The ERB estimated
that the average loss in turnover for small businesses as a result of the
2015 power crisis was over K19,000. Load-shedding this year has been
worse than in 2015 and comes at a time when the private sector is facing
many other challenges: depreciating kwacha and inflation increasing the
costs of inputs; increased taxes, fees and charges; uncertainty over the sales
tax; and government payment arrears.
